S&P ups Innoviva secured debt

S&P said it affirmed its B+ long-term issuer credit rating on Innoviva Inc.

At the same time, S&P raised the senior secured issue credit rating to BB+ from BB. The 1+ recovery rating reflects expectations for 100% recovery in a payment default.

S&P also affirmed the unsecured issue-level rating of B+ and the subordinated issue-level rating of B-. The recovery ratings are 4 and 6, respectively. The 4 recovery rating reflects an expectation for average recovery (30%-50%; rounded estimate 35%) in the event of a payment default. The 6 recovery rating reflects an expectation for negligible recovery (0%-10%; rounded estimate 0%).

The outlook is stable.

“The B+ corporate credit rating on pharmaceutical royalty management company Innoviva Inc. reflects its concentrated revenue sources, limited operations, and our belief that debt leverage could increase if Innoviva acquires more royalty assets to diversify and sustain its business,” S&P said in a news release.

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